Major multinational firm Mahindra & Mahindra is expected to launch Mahindra Korea early next year in a bid to further expand its presence in Korea, where Mahindra stands as the largest stakeholder of Ssangyong Motor Co., sources said.

Mahindra’s senior vice president Dilip Sundaram is to be the first director based in the country. Sundaram has served as the chief finance officer of Mahindra since the India-based company acquired Ssangyong.

Mahindra Korea is likely to handle the financial business scheduled to be launched here as an auto capital firm for Ssangyong customers.

Herald Business recently reported that an electric motorbike may be one of the first products sold under Mahindra Korea.

The bikes are to be launched by Mahindra’s U.S. operations in April next year.
The areas of IT, construction equipment and agricultural machinery may also be placed under Mahindra Korea’s guidance, as Mahindra & Mahindra currently has a presence in those sectors.

However, the auto business will remain under Ssangyong’s management.

Sundaram told Herald Business in an interview that Mahindra would not get directly involved in the automobile business in Korea.

He added that “upon request from Ssangyong,” Mahindra may launch autos and related vehicles that are not produced by Ssangyong.

In a further move to expand its global reach, Mahindra may establish a research and development center in the U.K., according to Ssangyong CEO Lee Yoo-il and Pawan Goenka, president of Mahindra’s automotive and farm equipment sectors, in recent interviews with the media.

Goenka said that a final decision would come within the next three to four months.

By Kim Ji-hyun and Lee Ji-yoon

(jemmie@heraldcorp.com) 

(jylee@heraldcorp.com)